Amazon reports strong growth in AWS and AI
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Amazon reports strong growth in AWS and AI
"In the third quarter of 2025, Amazon achieved its strongest growth in its AWS cloud division since 2022. Amazon Web Services' revenue grew by 20 percent to $33 billion. This exceeded Wall Street's expectations, which had predicted $32.4 billion. Amazon's total revenue rose thirteen percent to $180.2 billion in the third quarter. Net income rose to $21.2 billion, or $1.95 per share. The figures exceeded analysts' expectations, leading to a share price increase of approximately nine percent in after-hours trading."
"According to Amazon, AWS's growth is mainly driven by increasing demand for computing power for artificial intelligence. Companies are increasingly using cloud platforms to train large AI models and run generative applications. Amazon expanded its data center capacity by 3.8 gigawatts last year, an increase greater than that of any other cloud provider. At the same time, the company is investing heavily in its own AI hardware, such as the Trainium2 chip, and in collaborations with model developers such as Anthropic."
"The recent launch of Project Rainier, a cluster with nearly half a million Trainium2 chips, is intended to accelerate the training of Anthropic's latest Claude models. AWS also introduced new server types with Nvidia and Intel chips for complex AI tasks. New foundation models from OpenAI, DeepSeek, Qwen, and others were added to the Bedrock platform. The company also released tools that enable developers to build AI agents and business applications."
AWS posted its strongest growth since 2022, with revenue up 20 percent to $33 billion in Q3 2025 and total Amazon revenue rising 13 percent to $180.2 billion. Net income increased to $21.2 billion, or $1.95 per share, prompting about a nine percent after-hours share gain. AWS expansion was driven by rising demand for AI compute, a 3.8-gigawatt increase in data center capacity, investments in Trainium2 chips and partnerships like Anthropic, the Project Rainier cluster, new Nvidia and Intel server types, added foundation models on Bedrock, developer tools, consumer AI features like Rufus, and Zoox robotaxi tests. The company also announced cuts to 14,000 office jobs.
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